ST PAUL, Minn. — The employment picture appears to be brightening a bit in Minnesota, with the state jobless rate dropping to 7.7% in July, down from 8.6% one month earlier.
New numbers released Thursday by the Minnesota Department of Employment and Economic Development (DEED) show that 32,500 new payroll jobs were added last month on a seasonally adjusted basis, a jump of 1.2%.
Nationally, the U.S. added 1.8 million jobs in July, an increase of 1.3% for the month.
“We’re moving in the right direction, but job growth is slowing, a sign that this recovery will likely take some time,” said DEED Commissioner Steve Grove. “It’s important for Minnesotans to know that many employers are hiring now, and that resources are available to help people prepare for in-demand jobs through CareerForce.”
Seasonally adjusted job gains in July were led by Leisure and Hospitality, up 17,200 positions (9.8%), with Accommodation and Food Service gaining 12,300 of the jobs (up 8.1%) and Arts, Entertainment, and Recreation gaining 4,900 jobs (up 20.4%). Government positions jumped by 6,200 (up 1.6%), mostly in Local Government and Education and Health Service, with a gain of 4,400 (up 0.9%), with Health Care and Social Assistance gaining 3,700 of those jobs (up 0.8%).
DEED says the supersectors losing jobs were Professional and Business Services, which lost 900 jobs (down 0.2%), Information also lost 900 jobs (down 2.2%), Construction lost 400 jobs (down 0.3%) and Mining and Logging lost 100 jobs (down 1.9%).
The July numbers show some groups of Minnesotans have been more impacted by unemployment than others during the pandemic. Based on six month moving averages (February to July 2020 data), the unemployment rate for Black Minnesotans is 15.3% in July, up 9 percentage points from 6.3% one year ago. For Hispanic Minnesotans, unemployment was 8.6% in July, up from 4.3% in July 2019. White Minnesotans have an unemployment rate of 6.3% in July, up from 3.1% one year ago.